On October 16, the New York Court of Appeals affirmed the dismissal of the RMBS repurchase action brought by Deutsche Bank National Trust Company, in its capacity as Trustee of the Harborview Mortgage Loan Trust Series 2007-7, against Quicken Loans Inc., the originator of the loans at issue. Although the Court of Appeals’ earlier decision in ACE found that causes of action for breaches of representations and warranties contained in an RMBS contract accrue on the closing date, the Trustee here relied on language in the Mortgage Loan Purchase and Warranties Agreement (“MLPWA“) that it claimed extended the statute of limitations. Specifically, the Trustee cited language in the MLPWA stating that a cause of action arising from a breach of a representation or warranty shall accrue upon the discovery of a breach by the purchaser and the failure by the seller to repurchase the defective loan at issue. The Court of Appeals affirmed the First Department’s holding that the Trustee’s claims were time-barred, rejecting the Trustee’s argument that the MLPWA created a substantive condition precedent. The Court of Appeals held the provision at issue merely set forth a remedy for a preexisting wrong, the breach of representations and warranties at the time of sale. It further found that an agreement to postpone the accrual of the cause of action would be inconsistent with New York law and public policy, which does not allow for parties to enter into an agreement that would preemptively extend the statute of limitations in this manner.